Nationwide Tries To Move Customers Out Of Branches

The UK’s Nationwide is trying to lure customers out of its branches by offering a new advantageous online current account. FlexDirect will pay credit interest of 2% p.a./AER (fixed) for the first year on in-credit balances up to £2,500. After the first year, the account pays 1% p.a./AER (variable). Additionally, customers are offered a three-month fee free overdraft and exclusive deals. 

Customers will be able to open their account at a local branch but will be required to use Nationwide’s online and telephone bank to carry out day-to-day transactions on their account. They will have access to select services such as exclusive savings, mortgages, credit cards and personal loan deals. Phil Smith, Nationwide’s head of current accounts, said: “FlexDirect offers customers a competitive rate of credit interest as well as providing them with access to exclusive deals on other Nationwide products. Supported by our Internet Bank, we feel this account will be a real hit with customers looking to get more from their current account.

To help those intending to transfer their current account, the Society has a dedicated team which switches customer’s direct debits and standing orders for them. Customers are kept informed of progress via text updates. At the same time the Society offers an account transfer promise to contact a customer’s direct debit providers within ten working days, if not we give them £100.

Nationwide’s online-only account launch follows the current European trend towards digital platforms. As previously reported by PYMNTS.com European countries like Sweden and the Netherlands are moving to the digital world and reducing cash at their local branches.